Croatia introduces new property agency law from 7 July with stronger buyer protections

Croatia's updated Law on Real Estate Brokerage comes into force on 7 July, introducing stricter rules for estate agencies and brokers in a move designed to improve transparency, strengthen consumer protection and tackle illegal activity in the property market. The legislation replaces rules in place since 2007 and affects buyers, sellers, landlords, tenants and agents.

Representatives of the Croatian Chamber of Economy (HGK) say the law provides clearer regulation of relationships between all parties while increasing oversight. Key changes include significantly higher penalties for illegal brokerage, increased professional liability insurance requirements, clearer contractual obligations and a mandatory code of ethics. Consumers are urged to check that an agency is listed in the official public register before using its services, and individuals who have passed the professional exam can no longer operate independently unless employed by an authorised company.

The law also introduces stricter standards for those running agencies, including measures to prevent people with criminal records from managing them. Agencies may no longer advertise a property without a signed brokerage agreement with the owner, and can only charge commission after such an agreement is signed — preventing fees simply for arranging a viewing.

Industry representatives warn wider challenges remain. Prices are expected to keep rising, though unevenly by region, while the number of transactions is falling amid affordability pressures. Experts point to limited housing supply, especially along the Adriatic coast where tourism reduces the availability of homes for local residents, and to unrealistic pricing expectations among some sellers.